Private sector lender Axis Bank reported a significant 26% year-on-year decline in its standalone net profit for the second quarter, registering Rs 5,090 crore, down from Rs 6,918 crore in the same quarter last year.
The bank’s net interest income (NII) grew slightly by 2% YoY to Rs 13,744 crore, compared with Rs 13,483 crore a year ago. Operating profit fell 3% YoY to Rs 10,413 crore.
Fee income for the quarter rose 10% YoY to Rs 6,037 crore, with retail fees contributing 71% of the total. Trading income added Rs 498 crore during the quarter.
Provisions and Contingencies
Provisions and contingencies for Q2 FY26 increased sharply by 61% YoY to Rs 3,547 crore, with specific loan loss provisions at Rs 2,133 crore. At the end of the September quarter, the bank’s cumulative provisions (standard plus additional other than NPA) stood at Rs 13,262 crore.
This translates to a standard asset coverage ratio of 1.13% as of September 2025. On an aggregated basis, the provision coverage ratio stands at 147% of gross non-performing assets (GNPA), reflecting the bank’s robust risk buffer.